♪ >> imus in the morning ♪ >> tax the rich wins. the republicans routed, stocks rally. good morning, everyone, and welcome to 2013. as of right now, everyone who works is paying more, and successful people are paying a lot more. yep, taxes up. the left wins a major victory, america may lose. and is a new cliff two months away. decision on the debt ceiling arrives at the end of the february. relief on wall street?

hey, it could have been worse, the dow will be up about 200 points just a few minutes from now. and here is the surprise. we may build that pipeline after all. "varney & company" is about to begin.

>> first of the new year and trade here is the surprise. lisa jackson resigned last week, because she was convinced that president obama will soon give the green light to the keystone pipeline. the president rejected for many reasons and could be up for approval in march or april. we'll have more on this later this hour. could the pipeline live? >> where are you this morning? answer, you, your taxes, they're going up. everyone to works pays more into social security, income, dividend and property taxes go up on successful people. on the other side of the coin, there are no spending cuts.

add it up. and the governor's own bean counters say the debt goes 3.9 trillion dollars over the next ten years. rich is now defined as families making more than $450,000 a year, they presumably are now paying their fair share, to make sure the rich don't stay rich in death, estate taxes go up. here is the president speaking last night. a big no to spending cuts. >> and i believe that there's further unnecessary spending in government that we can eliminate. but we can't simply cut our way to prosperity. >> he wants tax increases as well as that. and the president says he's not going to discuss the debt ceiling with congress. so, america's fundamental problems are overspending and massive debt remain unresolved. in my opinion, we look more and more like greece. that's my opinion. okay. and later this hour, democrat strategist and former clinton

advisor doug schoen tells the company, are we like greece? is this deal affecting america's prosperity. i'll ask him the top of the hour. and grover norquist, is he backing down from his no-tax pledge? is he hedging? find out, ten o'clock this morning. go to our facebook page, tell us what you think about the deal that we've got, you're happy with it. if you are, we want to know why. we'll read some of your comments on the air. tell us why we want that in there. the markets, they've got their answer on the fiscal cliff, a deal has been done, the result is yes, it is a rally. we're going to see a big gain for the dow. it's going to be big. the opening bell for this brand new year is next.

night ♪ >> surely you recognize that music, don't you? that's played on the bah zuki? why are we playing that? because america looks a whole lot like greece in morning. why? we've got a fiscal cliff deal. all it does is raise taxes. it doesn't cut spending, it doesn't do anything about the debt that we and europe and greece are facing. nothing at all. america's fundamental spending and massive debt has gone completely unaddressed. not there. that's why we're playing greek music as we start out this trading session this wednesday morning, first trading day of 2013. when that opening bell rings, about a minute from now, you're

indeed going to see the dow go straight up. we're looking for a gain of about 200 points, some of the biggest named stocks will be sharply higher. i'm expecting apple to go up, looking at the pre-market, go up 13, 14, $15. approaching 550 a share again. priceline is going to be up almost $20. google is up about $10 this is all pre-market trading which is very likely to carry through into the actual trading session and facebook is going to be up about 80 cents. that's all pre-market translated into the actual market which opens up about a half minute from now. that opening bell will ring. and when it stops ringing the trading will begin. as i've said we played some greek music for you and we'll play it through the show. because america today is more firmly on the road to europe than ever and the greeks are right out there with the biggest possible debt.

[bell ringing] by the way, there's a fiscal cliff looming, we've got to face the debt all over again. cue the music. trading has begun and the dow industrial average has gone up and we think the actual market we're expecting a gain of roughly 200 points in the first few minutes worth of business. that will take the dow all the way up to about 13-3. i've got another stock that's in the news apart from apple, priceline, google. i've got another one for you. it's this. you know that everybody hates to drive behind a zip car, you know that because zip cars are usually driven by city folk behind the wheel and don't drive well. zip car is in the news, avis, the budget group-- the rental group they're going to pay 500 million dollars in cash, so, nicole, first merger of the new year, first takeover. where is the stock? >> that's right, the zip car is soaring up nearly 48%, that's the premium that this deal is at and that's what we're seeing. avis is up 3 1/3%. and i've got to tell you, i love

you for many reasons, but two in particular, the first because you said everybody hates to drive behind a zip car. i'm glad you said it and i didn't. and secondly, because you pronounced your greek music so beautifully. stuart: let me repeat it, let's see if i can get it right twice in a row. of the instrument used is a bazuki. and you'll hear more on "varney & company" today. opa. and the dow is up almost 150-- 163, 170 points, and looks likes 200 points within the next couple of minutes and we'll check it out for you. and your taxes are going up this year and i want to tell everybody who is going to pay what. joining us now with the real details is our tax guru, certified financial planner. i want to go through various

taxable items and find out who is paying what as of this morning. first of all, payroll taxes, they're up for everybody who works, right? >> everyone who works, people pay payroll tax up to $113,700 of income. so, those that pay, make a dollar to 113, they are he' going to pay 2% more than they paid last year. stuart: because the payroll tax holiday is over. >> it's over on average the person making 113 is paying about $200 a month more, so somebody making $50,000 a year is going to be paying roughly $100 more or 1,000 or $1200 a year more. stuart: okay. and the estate tax, this is a big one for a lot of people especially our viewers, i know this. the estate tax is now where? >> this is such a surprise because we went from 35% to 40%. what's shocking is they kept the exemption amount the 5 million dollars. okay, per person. stuart: so the tax rate has gone up to 40%. >> the rate has gone up to 40%,

but the exemption amount stayed where it was last year, which was 5 million. stuart: per person. >> per person. what we don't know is it portable or not, we don't know the details of the plan yet. going from husband to wife. if you had asked any estate planning attorney last year they would bet the rate, the exemption rate would have come in at 3 1/2 million dollars, but it stayed at 5 million dollars. >> husband and wife pass away together, let's suppose, they pass away together. 10 million dollars is excluded from tax. >> great point. the estate tax is not due until the second death, but yes, in that case 10 million dollars from federal estate tax. by the state. stuart: dividend taxes. >> you know, this is interesting, it's only going to affect the top bracket again. stuart: you've got 400,000. >> 400 individual and 450-- >> let's get real clear. if you make $400,000 or more, the tax you pay on any dividend

income has just gone up to what? >> from 15 to 20% on capital gains from 15 to 20%. the person in the 15 to 15% bracket pay zero just like last year. the person in the 25 to 035% bracket, they're going to pay 15%. the only increase is on people who are making 400,000 individual or 450,000 joint. stuart: okay. >> they're going to pay 20%. stuart: capital gains taxes, as of now where? >> same exempting as dividends. 15 to 20% only on the highest earners. stuart: i think i'm going to trip you up, yes, i think, 15 to 20% from high income earners, from 15 to 23% because under obamacare you pay more on capital gains and dividend if you're high income. an extra 3 1/2% for obamacare.

>> let's go tit for tat. you pay an extra possibly 1% because of the new pea's phaseout. there's something on investment income that's going to be phased into the tax system where it's high tax earners and it's a crazy calculation, may pay an extra 1% on capital gains so now we have 3 1/2 plus 1%, and you're paying 24% of capital gains. stuart: okay, so the spending side of the equation, i know you don't really deal with this. that's not dealt with, the debt side has not been dealt with. this deal is all about raising taxes, that's it? >> whoever negotiated this deal is a master negotiator, either on one side or the other because they got what they wanted they got tax increase, but they didn't give up anything. there is no tax reduction on the other side, no spending reduction on the other side. stuart: right. >> now, that's supposed to come in the next couple of weeks or

months, but you heard the president last night what he said. >> i think this is the first income tax increase on anybody in 20 years. is that correct? >> the highest income tax increase in 20 years. the highest. especially on high income earners. >> okay. you're in the financial planning business. >> correct. stuart: people are running to you, what can i do? >> well. stuart: in the economy. >> they ran last year, there were a couple of things we could have done with gift tax et cetera, this year if they're going to pay a little bit more, there are tax things to do. >> if it's on the books income. if it's personal on the books income, you pay it. >> that's right. stuart: al glover, i'm glad you set us straight, direct and to the point. thanks, al. congress apparently stopped working when it passed the fiscal cliff deal just stopped. superstorm sandy destroyed 72,000 homes, but congress failed to act on the recovery bill there. the senate approved a 60 million dollar measure friday, the house

did not vote on it. both republicans and democrats from the northeast especially, they're not happy with it. here is new york congressman michael grimm. >> and lost family members and now, i have to go home and tell them their new years gift they're going to wait even longer, even longer for something they should have had over a month ago. stuart: okay, fair point, but look, we've got to point out that the senate bill was loaded with pork, help for alaska's the vote was not taken on the sandy relief measure. you remember the newspaper that published the names of gun owners in new york counties? those gun owners were outraged. now, you won't believe how that newspaper is responding. that will be new at 10. and also, the top of the hour, the n.r.a. calls for armed guards in every school and now one town in new jersey, following through with its plans to put guns in schools starting

today. back to nicole, we've got the dow up 230 points, i've got to believe that apple is a huge winner today. >> it sure is. just like all 30 dow components that have up arrows today. apple is up nearly 4% and that's a gain of over $21. the reason why, well, first of all, you have the january effect. everybody's jumping in to buy and second, it's a great day on wall street because of what we saw in washington, and a new iphone or iphone six? that's what apple-- applications are finding the app usage logs, and identifier of an iphone 6.1 according to a tech website. get ready for the next apple product, everybody? >> do you remember, nicole, i think only a matter of a week, week and a half, two weeks tops, we opened the show saying did apple crack below 500, yes, it did, 499 and change, i think. >> right, right. stuart: and now. >> well, it's doing well today,

but it's down about 20% over the last three months, so apple shareholders are ready for a nice, new year and some upwards action. >> and let me ask you this. i think hewlett-packard is also a huge bounce this morning. and told me in my ear, up 8%. >> i'm not surprised it's a number one performer. don't forecast the number one loser in the dow industrials, for 2012 and hewlett-packard dropped. and people selling, not interested in stocks and got out. today is the day they're getting in. jack january will be rocket. stuart: i'll ask you about microsoft at some point, but probably not now. the dow is up 231 and i have your seven early mornings. and close to a billion dollar settlement on home loans with the largest banks. a name that you know, citigrrup,

up a buck 80 even though that big settlement is very close. the music manager behind the eagles and christina aguilera has resigned as chairman of live nation. the stock is up. the justice department declined to prosecute bridge point and the stock is up. middle me has acquired viking ranges, i know those, huge things. and middleby is up four bucks. a constipation drugs meets key goals. the stock it up. zynga confirmed it carried out 11 of the planed shut down of 13 games and zynga barely budging, up 5 cents. j.p. morgan raised target, facebook is up. the dow is up 226. president obama may have scored, what he did, he scored a big win with that fiscal cliff deal, but

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220, 230 points and stopped dead. that's where we are, a very solid gain, however. look at the price of oil, please. we're up to -- were up to $93 a barrel. 93.40 right now, that's a big gain. say goodbye to any declines in gas prices. they're on the way up. last night's fiscal cliff deal raises taxes on just about everybody. it is a huge political win for president obama. yep, it is. and let's bring in doug schoen, former clinton advisor and fox news contributor. look, i'm saying, it's a huge win for the president, politically, but for the country, economically, i think it's very bad news and you say what? >> it's a disaster. i'm a centrist democrat, still am, a centrist democrat, but a democrat. we're doing nothing about the debt, the deficit, bugetary policies and we're up against the debt ceiling limit in a month or two. stuart, this is rotten. stuart: at what point are you going to leave the party that's just done this to us? >> well, the republican party

had no strategy, no plan, nothing as an alternative so you have to compare something in this case to nothing and i'm not going to join a party that's bereft of ideas and doesn't stand for one nation policy. >> at the start this have program, i played greek music. >> right. >> and sort of tongue in cheek, but there's a point there. am i being too strong in likening america to greece. >> stuart, had i been you, i would have played italian folk songs we're closer to italy than to greece. we're headed to a fiscal armageddon. we can't sustain the policies that the president is pursuing. >> hold on one second, i've got a gallup poll that measures public satisfaction with the direction the country is headed in, at the start of a president's second term. only 23% are satisfied with the current direction as we start president obama's second term. it was 45% satisfaction at the beginning of george bush's second term. and he wasn't exactly popular at

that point. >> and what does that tell you about the way people feel about our country? >> here is what it says. this win on the tax vote is a short-term victory for president obama. as you correctly pointed out. long-term, it's bad policy and the the american people who are already very cynical will hold the president accountable, the mid term elections could be a disaster for the democrats and the president. stuart: i put it to you, that your centrist wing of the democrat party virtually no longer exists. >> that's correct. it's very sad, but those of us in the middle and stuart, sometimes we're allies and other times not. it's hard to be in the middle when there is no middle. >> a quick comment on the stories in the new york post, they say we may build the keystone pipeline and that's why lisa jackson is leaving the epa, your comment. >> two reactions, if we build the keystone pipeline, that's terrific, terrific for domestic energy and for breaking our link to overseas automatic.

and if she goes because of that, my attitude would be good riddance. >> why is the president, i mean, this is just something that may happen. >> right. stuart: why may it happen now and not before the election? >> because of the unions and the environmentalists. bottom line, he made the judgment that politically he needed to keep the environmentalists on the table. he didn't want darryl hanna arrested in front of the the white house if she had been the one arrested. he wanted to keep it down, but he said to the unions, don't worry, we'll get it built afterwards and bottom line given the union financing of the democratic party, none of this is a surprise. stuart: it is a surprise to me. look, he hasn't done it, we haven't approved this thing nor built it, obviously. but this is the first time i remember where the president actually reverses course in an ideological way. >> he reverses course because politically he's obligated to his funders and it's also such logical sound public policy, even this president has to

follow what i believe is logic and good sense. >> if you don't believe he's never really going to rein in spending and reform entitlements. he's not going to do that. >> stuart, i'm a supporter of bowles-simpson and you have some sympathy for that. i would believe anyone who supports those policies has to be sad today. stuart: you like bowles-simpson. >> i do. stuart: i like it because it actually reduces tax rates. >> correct. stuart: there's nobody in the democratic party who goes with lower tax rates. >> only erskine bowles of the bowles-simpson plan and he's a lodge man. stuart: and doug schoen. >> i'm lonely, too, but pleased to be with you sharing my views. stuart: happy new year. >> thank you. stuart: the gold report, i bet the price is up-- oh, not much though. we're running into this all of this debt and printing the money and gold is still at 1687. but we're up 11 bucks and 60 cents as of today. i'm going to pose the question, how much-- can't believe this, how much is a daughter worth?

for one chinese father the answer is hundreds of millions of dollars. elizabeth macdonald, charles payne, they'll be reacting to the china bride story. ♪ oh, oh, china grove ♪ ♪

>> yes, it is a rally, dare we say, a fiscal cliff relief rally? dow is up 250 points. now, look at this, please, all 30 of the dow stocks are in the green. and sky of blue, sea of green. yes, we have it all up, 30 of them. hewlett-packard to wal-mart, every single dow stock is up and then some. nice going. one bride in china came with an expensive price for her father,

four boxes of gold, a porsche, a mercedes benz, and bank account with 20 million yuan, yeah, 3 million bucks, 5 million shares of his company thrown in and a package as this part of the deal, 16 million. the couple went to school together until they he were 18. and celebrated with an eight-day public wedding banquet and for good luck, as part of the dowery, 2 million dollar to local charities. the father of the bride is a tile, bathroom tile magnate. 163 million dollar and a dowry did you come with that? >> not at all. probably came with a hair brush and a comforter. the story about this, this is a region of the country a lot of very rich people, bragging rights to giving these kind of doweries, and for this reason, china is basically marrying a bride from this area is better

than robbing a bank. that's the joke. charles: i love it. stuart: you love it. charles: it's a celebration of wealth and success. in this country we're beating up people for being marginally successful, 450,000, pay your fair share, china is nipping on our heels. >> and real estate is thrown in, two villas, a retail store, it's hysterical. stuart: gets the lot. >> i would like to see a picture of the bride. stuart: there was a picture in the daily telegraph in britain, she's beautiful. marrying a low level government employee, someone not making a ton of money, but he's now a wealthy man. charles: love it. i tell you it's fantastic. stuart: and charles sweetheart talking here, what difference, just-- doesn't matter what he does, i'm having a conversation with the

camera, it does matter what he does for a level. a lower level official and now a rich man. >> marrying for love, and money was aside. stuart: whatever you say, charles. can we move on? wait a minute, wait a minute, there's more, it's liz macdonald's birthday. charles: oh. >> and i won't be getting a dowery like that. >> go ahead. stuart: you're worth it. >> well, i get a lot of regifted christmas gifts nobody wants like potpourri covered hangers and scented candles. stuart: did you get the fruit cake. >> yes, and that would be the flood of noah, same fruit cake is regifted around the planet and i have it. stuart: the universal suffer. and we're out of time. two big headlines on guns to bring you and they're both new at 10. the judge joins the company to talk about it and everybody else, they're itching to go off on the fiscal cliff deal as well. all testify next.

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♪ stuart pirri -- stuart: new at ten, gun control. two stories to bring you. first. the journal news, a newspaper from suburban new york publishes the names of gun owners.

now it's using armed security to protect its offices. the town of in new jersey putting armed police officers in schools startling today. we're on those two stories. check the big board on this. it's a rally, a big one thanks to the fiscal cliff deal. i'm calling it a relief rally, could have been worse, down up 162 points. first doppler trading day of th, and here's the company, i less beth macdonald, birthday girl, and charlie payne is here, and look, judge nanaplitano is here. it's the last day to avoid the fiscal cliff, but another is coming. in two months, they have to act to raise the debt ceiling or do something about the debate and and -- avoid spending cuts. two items, judge, to you first. there's another cliff -- we're

simply not resolving the fundamental underlying problem of america which is spending and debt. >> in full accord of what you said. didn't resolve it last night, not over the weekend, and there's not the will to resolve it. now, i'm trying to say that from a neutral point of view. that is, the american people, business people, entrepreneurs, homeowners, the vast majority of the american society need to know in advance what the tax laws are and rates will be. we cannot long tolerate a government that puts together scotch tape deals in the last minute and literally the last minute so two days ago people didn't know the taxes rates today. that's from a neutral point of view. from a partisan point of view if you permit me, it's a total -- the republicans didn't gain anything from the deal giving the president everything he wanted. they don't stand for any small

government, lower taxes, stop the borrowing values. they have opportunities to redeem themselves, like, with the debt ceiling, but they're behavior -- charles: judge, i think what republicans say, is we lost the public relations battle. maybe the country has to see what the end results of what these policies are. we can't warn because they don't believe us. live through it, maybe it takes a couple years of the free willing spending, $20 trillion in debt to somehow trigger a grand epiphany. that could be the only way. %-program, we played greek musi, tongue-in-cheek, but kind of serious. cue the music. by the way, it is the song played on a bazooki. we're joking around, but this is serious. we are -- we are certainly on the road to europe, aren't we? >> at the rate the president is going, he'll have $21 trillion

in debt by the end of this term. >> it's astonishing meaning the federal reserve's balance sheet doubles. they buy the debt. to the point about going to the road of europe. we are seeing that in california with the upper brackets leaving the state. we see that now in france. the upper brackets leave france. stuart: that's true. >> when you manufacture dependency, politicians know that. stuart: i agree. >> do you agree with me when in two months i suggest the house of representatives vote "no" on raising the debt ceiling and force the president to live within his means or say, oh, let's borrow more and pay less. stuart: no, i will not agree to that, no. >> when will this madness end? it just gets worse. stuart: it's a political dispute to be resolved politically over a period of time. to cut off all new borrowing suddenly is economic disaster. it is absolutely economic

disaster. >> you are feeding the mouse that will devour you. that's what you are doing. >> your words, not mine. the -- an agreement to raise the debt ceiling, to borrow more money has to come with an agreement to cut entitlements, reform entitlements and cut spending in the president. >> the president and the democrats -- it's a good argument, but the president and democrats never will enter into an agreement like that, and the only way to stop borrowing, is to make it unlawful. >> you talk republicans, democrats, but what about the voter? back to the original question, i think we all believe in a country we shouldn't have heart ache, none of us should suffer a heart landing, shouldn't lose the house, shouldn't lose the car even if we bought things we can't afford. >> we should get a new house even if we didn't ensure it. >> you know what fixes the problem? margaret thatcher. stuart: oh, please.

look at the dow, please, we're talking about doom and gloom and debt ceiling and crisises, but the dough is up 269 points approaching 13400. nicole, let's bring you in here because that rally for the dow means that some of the big name stocks on the dow are way, way up, and i want you to tell us which ones. >> yeah, take a look here. we have the best performance,hp, of course, the big loser of 20 # 12, but number one today at 5.5. caterpillar up 4%. bank of america, new 52-week high up 3.5%. you are doing doom and gloom over there, but wall street and washington are so closely tied together. today, we obviously got good news from washington. they saw this for the new york term, and in the meantime, the january effect, everybody selling off over the last few years sitting on the sidelines is ready to play here so when i talked to someone like jason saying get ready, january and february look great, and this is

a great start here, all dow components in the green, up over 2%. stuart: nicole, we hear you. bringing in charles payne for a second. we're talking about debt and real problems down the road. >> right. stuart: yet, the dough is up 265 points. explain it. >> a couple things. first of all, the stock market is probably the only game in town as well as hard assets. there's the point of the fed and the debt. ultimately, the assets will swell. wall street loves money printing. that's why japan is through the roof and ours. no connection between our market and economy. no committee. >> why can't thatcher fix the problem? >> she can, but doesn't cut everything all the sudden. >> she reforms. stuart: bee-before we move on, the trouble with socialism, sooner or later, you run out of other people's money. >> thank you! [laughter] stuart: conservative tax watchdog, name of grover

norquist sounding off on the fiscal cliff deal tweeting this, direct quote, "the bush tax cuts laxed at midnight last night. every republican voting for the senate bill is cutting taxes and keeping his or her pledge." what? joining us now is one of grover's top lieutenants, manny duplo with americans for tax reform. that statement sounded to me like a real big back pedal, sorry, but that's what it sounds like to me. you want to clear me up here? go. >> yeah, and good morning to you too, stuart. stuart: good morning. >> look, this is what we have. we have a fiscal cliff we've been talking about for months, if not years. we know december 31st at midnight, all the bush tax relief expires so what happens at midnight? we don't have a deal in place. it expires, and everyone now wants to agent like it never happened. you know, it's an interesting

position. stuart: yeah -- >> for republicans to be in to say the position we're in, the largest tax hike is coming, ignore it happened, and then not do anything about it. stuart: grover's saying, off the cliff, everybody's taxes go up, but in comes the senate bill and cuts taxes on 98% of the people; therefore, it's okay to break the pledge. that's a technicality. >> stuart, this has no pledge implications whatsoever. current law was that this huge tax hike was going to happen. it was on republicans to stop this tax hike, and what we got from the senate and from republicans on the hill was the best they coiled do from the negotiating position they were in. remember -- stuart: are you sure? >> they were against us. it is current law. it would happen absent interaction from congress and the president. stuart: are you sure he's not been beaten up, grover norquist

beaten up so bad retreated into technical grounds? >> you know we're tough. willing to take the press and the left because we know republicans are getting serious about trying to cut government, but how do you get there without the tax issue off the table? stuart: quickly. >> does it mean it's just grover gone rogue or the new reality for you guys at americans for tax retomorrow? >> this has all been the position that current law baseline is something to be concerned about. tax law does not extends forever just the way it currently is. we have to look apt the way the law is written, and all tax relief in place by 0103 so republicans had to do something to fix it, requiring legislating, not just allowing present law to expire. stuart: charles payne itching, go. >> after plan b failed, boehner had a shot directly at grover. where is the next move? the debt ceiling? where do you make a stand? i thought this was the stand,

and if you lost, you lost. it's okay to say that. you know, are you going to make a stand or even the grover norquist pledge a moving goalpost? >> charles, explain to me how we lost. as i mentioned before, we had a massive tax hike at midnight -- >> forget about that, what about the debt ceiling? are you taking a serious stand? >> absolutely. it is a good position that republicans are in now to cut the size of government. you know, we forget the debt limit was passed for years and years and years. once speaker boehner was in power, this was the first time we used the debt ceiling to try to cut the size of government, to reign in spending, and republicans now have an excellent opportunity to do that with the debt limit coming in a couple month as well as continuing resolution when government funding expires. these are two battles where republicans have leverage against democrats because we want to cut the size of government, and democrats shown they are not serious about doing anything. stuart: we'll watch the battle because you can see it coming a

mile off, and we want your input as well. thank you for joining us. >> absolutely, thanks, stuart. stuart: we asked for comments for those who like the fiscal cliff deal, those who like the deal. this is the best we found. ron says, "if we still spend more than we take in, we have not accomplished anything." okay. >> that was the best? >> economics 101. it's accurate. stuart: the producer says he was joking. nobody likes it. couldn't find anybody. this is from greg, "i saw my first pay stub for 2013, social security tax up 2%. i was told taxes would not go up." david says this, "this is an absolute joke. the republicans have no backbone and as a business owner, i'm done." strong stuff. nobody likes it, okay? at least, on our facebook page, nobody likes it. >> republicans caved. they got nothing in return for

this deal. stuart: different subject for one brief shining moment. venezuela's president, chavez, ill, on life support, and could be turned off at any moment. john bolten joining us talking about venezuela and what's happening there, and what happened to the response. nicole, hurtz riding the rally. what's big about that? where's the stock? >> that's right. well, today is the first day of the new year, emergency -- mergers, acquisitions, avis, the rental business, and there's a look at hurtz right now. it's a winner as well. i wanted to talk about auto sales, general motors, and ford, can't leave it out; right? general motors and ford hitting 52-week highs on the prospect auto sales will be on the rise with improved pickups and

economy, and those are at 52-week highs. stuart: by the way, microsoft, whose stock i own, is up 57 cents, at $27 a share. [laughter] >> all right. everybody's singing and dancing. it's good; right? stuart: i don't know why people laugh at me, but they do. dow's up 260. the new at ten stories, a newspaper in the suburbs north of new york city posted a map on the website showing which homeowners have a gun permit. well, now, that newspaper hired armed guards to patrol the area. tons of calls and e-mails poured in after the map was posted, and right after the nra called for armed guards in schools, new jersey will have armed police patrolling their school starting today. the decision was made by officials last month after the massacre in sandy hook, in new town, connecticut, that killed 26 people. all right, judge, two issues here. deal with the newspaper first.

they published the list of homeowners and their addresses. they got guns. they publish it, and now they are protecting the officers with armed guards. >> they are obviously being inconsistent, and they don't know why they feel they need armed protection at the newspapers; however, i think it was wrong for them to have revealed those names, but not unconstitutional or unlawful. from a moral point of view, this wratch ets up the debate and turns the heat up, exposes people to public gaze when they should not be. on the other hand, when you get a license from the government, and when you interact with the government, that is a public event, and newspapers have the right to print it. basically, they print this at their peril. people will be upset at what they did, but they had ever right to do it. >> shouldn't the newspaper put their address on it because they have armed guards? >> everybody knows where the newspaper is. i don't know why -- >> put it on the map. >> well, i don't know why they did --

>> put their own address on the map. >> the interactive map invites retaliation for people doing what the law authorizes them to do which is get permission to own a gun. put aside whether or not you should have to have permission. i don't think you should, but in this society, you do need a permission slip from the government in order to protect yourself. putting that on the interactive map says here's where the people are. let's go after them. that does not serve the public good. stuart: okay. we are out of time, but, judge, thank you very much indeed. you are staying with us, aren't you? >> if you want me to. stuart: if you are not careful, you'll be asked. 800 new laws on the books in california for 2013. one law bans protests at funerals. is this a first amendment issue or a privacy issue? the judge is going to stay. he has a ruling on that after this break.

♪ stuart: this car, now that's the company allowing, indeed encourages, city folk to get behind the wheel whenever they feel like it. making news this morning, in the news, one of the first big mergers, thee first of 2013, avis buying zip car for $500 million in cash. shares of zipcar therefore up by 48%. apple's up today on news it started testing a new iphone, that's a big deal. the next version of the operating system software, that

is, tech website says engineers of apple are testing apps to see if they are compatible with the new operating system. apple's up 3%. facebook up, raising price target saying advertising revenue rises in the first quarter of the year because of a new ad exchange system that improves sales. shares of facebook, 27.50, up 3%. more from the judge in 90 seconds.

stuart: one town in massachusetts banned plastic water bottles, and activists pushing for it for three years, and it's cutting down on plastic waste and fossil fuels used to make the bottles. you want to say anything about this at all, judge, or just let it go? >> you know, when the government -- the more laws the government writes, the more expensive the world becomes and the more costs to enforce the laws, and it's to the point now where local governments think they can right any wrong and

regulate any behavior they want. you can't go against human nature and you need wiggle room between the ideal and the way people comport their lives. stuart: good, isn't he? >> he's great. i love how the ban is lifted in an emergency to sell the bottles. >> look at the laws lifted after sandy because the society works better with fewer laws. stuart: moving on to something much more important, and just more important. a new law in california makes it illegal to protest at funerals. the law bans protesters from dmon straight an hour before and after a funeral ends. is this a first amendment issue, judge? >> well, it's not only a first amendment issue, but it's a direct conflict and contradiction to a recent supreme court opinion which held that these awful people at the westboro baptist church, no matter how horrible the message

may be, enjoy the same rights as the rest of us. if they want to celebrate the death of the decedent at the decedent's own funeral on public property, not going in the church, private property or in the place of the funeral, the funeral home, but from a street corner, every right to do so so says the supreme court. california can't change that. stuart: you protest a funeral, got to stay from a certain distance, california says you can't protest at all. >> you can't interfere with the lawful presence of the mourners, but you can stand on the sidewalk and shout at them. you can't go on private property where you are unwanted like a church, synagogue, mosque, or funeral parlor, but if the procession is coming down on the street, can they stand on the street with signs? they can. it's not me. it's the supreme court. california can't interfere with that. >> leave aside the libertarian

position, judge, turning to charles and liz, you favor the law? >> no, as a matter of fact, i don't. i think liberals are trying to dump the constitution in general, and they think this might be an issue to help them with people on the right, but i here commentators where behold a 200-year-old piece of paper? it's a quasi-smart tactical plan on their part. >> protesting military funerals are protected, but how does the supreme court, judge, arrive at the 300 foot limit or any limit? i don't understand the rationale. stuart: decency. >> the basic rule is that when it comes to freedom of speech, the speaker has to be within eyesight or earshot of the intended target so if, for example, you were to keep people 300 feet away from the president, that is effectively blocking their freedom of speech, and so -- >> that's what i was getting at. >> keep these people 300 feet

away from the mourners, that's blocking freedom of speech. it's a valued judgment. >> it is. >> which is more protected by the natural law and by the supreme court. privacy of the time of a funeral or freedom of speech. the answer is freedom of speech. stuart: you go with freedom of speech, every time? >> i would every time, but the supreme court has in this specific instance done so already. i'm mystified by how the state of california as whacky as it is can enact laws that defie a supreme court opinion that's nine months old. it's california, what can i say? stuart: judge, thank you so much. >> pleasure, pleasure, good to be back with you. stuart: taxes spend like europe, my take next, but, first, cue that greek music, please. [laughter] ♪

>> if i were you, i would have played italian folk songs. you are not too strong because we're in the direction of fiscal armageddon. we can't sustain the policies that the president is pursuing. stuart: he's a democrat. that was doge shone in the last hour talking about the direction the country's headed after the

deal. remember, you got to tune in at 9:20 sharp to catch this good stuff. time for a market check. it is a rally, a big one, 257 points higher for the dow. the hollywood elites came out in full force for president obama, tax the rich, they say, pay your fair share. wouldn't you know it? hidden in the fiscal cliff deal is 5 tax break for hollywood movie producers. find out how much, 10:50 this morning, this program. here's my take on the tax and spend deal otherwise known as the fiscal cliff debacle. it makes america even more like europe, and if you watch this program regularly, you know i don't like it. i left europe nearly 40 years ago. i do not want to see my adopted country get more like the one i left, but that is exactly what's happening. president obama has squeezed successful high income people just like tax the rich europe. he refuses to cut spending and will not touch the entitlement

programs that will bankrupt us just like europe. today, and in the future, the federal government dominates the economy just like europe. all government all the time means slow economic growth and high unemployment like europe. dig deeper. consider the moral goals of this brave new america. fairness, equality at all costs. it sometimes seems like this administration is obsessed with a view of fairness. the word is used at every turn. public enemy number one is income inequality? i disagree, jealousy, class warfare, appropriation are the real dangers. president obama has fed that fire like no other president in recent history, just like europe, but like europe, america will eventually have to face the hole that president obama has dug. that hole is called debt. you cannot keep piling it up forever, scene you can't make the rich pay for it all.

it's a moral and financial big trouble just like europe. [ male announcer ] where do you turn for legal matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

stuart: the market rallies on this fiscal close the deal. we have not spoken to anyone who really likes this deal. is this a deal that you can love as an american citizen? >> no, of course i do not love it. no one in washington has the slightest idea where a job comes from. a job comes from a business owner. have some profit and heat decides to expand his production.

it is a real shame that we have the fed standing there to backstop. it is a shame that we have such a large percentage that is the beneficiary of government spending. our politicians should be getting punished right now. stuart: you hate it as a citizen. you are a traitor. you will make money out of it, won't you? >> i happen to like the crude oil market. it is looking up today. i suppose that would be a positive. my job is to come here on a day-to-day basis, just because the market is up, i may have made some money. i could have been short. it does make me sick. our politicians in washington should be punished. stuart: you tell it how you see it. we like it. joining us now is not walsh.

there is another cliff coming and you know it. >> before that even. stuart: it could be six weeks. the debt ceiling, we have to either raise it or get into agreement. someone on this program said, no, do not raise the ceiling. stop that right now. what do you think? >> i would love to see that happen. [talking over each other] >> it is an interesting theory. it is in interesting idea. we do not live in that world. it will not happen. if we will have a permanent cliff, right, that is what we have. the fiscal cliff is over so now we have, what, the milk with 4:00 o'clock we had 30 or 50 tax

extenders on this. we go from artificial crisis to artificial crosses under crisis. so, yeah, it this is how you will do it, every time we have one, let's do this all over again. stuart: you say stop. enough. do not raise that debt ceiling. >> i would like to see that as any type of negotiation. i would love to see a universe that is much different. stuart: no more borrowing, live within your means.

you would have a crash. an almighty crash. >> i do not believe that is true. [talking over each other] stuart: you can move the money around. in the mid- 1990s, we did not have a borrowing requirement. >> we have had eight debt ceiling crisis since 1962. stuart: i have to get this straightened out, i say if we stopped dead, no more borrowing number i say we crash. >> i say we crash, but maybe that is what we need to do. stuart: no wonder who did that whatever get elected ever again. >> i do not think we crash. i think we correct ourselves. >> whoever steps up to the plate, ultimately, you are right. they will be demonized and a village until maybe four or five

or ten years down the road. >> talk about the legacy of president obama. he was a big spender. what is obama's legacy? >> the new era of fiscal responsibility. i call this whole thing the obama budget. they acted on the impulse by medicare part d and all the things we talk about on the show a thousand times. we have gone from a prelaunch party and the ultimate things of what we have now. how much money we are willing to tax americans and how much money we have taken for granted.

stuart: stay right there. congressman from california said this in his farewell speech. "climate change is a fact of life. the outgoing chairman says climate change is an act of life. ". >> if you are going to do something about climate change, make sure you continue getting more rich. richer countries are cleaner countries. if you have policies that prevent you from being able to get rich, you will not be able to clean up your environment. the one terrible thing that you could imagine is a carbon tax. stuart: my point is a republican has climate change and doing

something about it. >> it depends. do you think climate change is happening? do you think man is contributing to the warming of the planet for that quarterback he believes based on it that man is contributing to the warming of the planet. stuart: what does he think we should do? >> a carbon tied. >> and get india and china in on it too. >> i do not buy into that notion yet. you know, maybe i will keep

hearing it over and over again. i think this carbon tax strategy is just disastrous. everything i have seen seems like -- [talking over each other] >> it is a total disaster. one thing that has helped so far is fracking. so much less carbon because of the fracking resolution. we are getting towards some of those targets. doing it through wealth generating activity. stuart: we have not had you on the show for a long time. you've come up here and give us is a big thing about the debt with that we will face and a carbon tax and global warming. is there any thing else? >> in lieu of, or because of the fiscal cliff, run for your life.

stuart: tax your feet. [ laughter ] we appreciate it. just a short time after the nra call for armed guards in schools. one town was clearly listening. barbara, new jersey. joining us on the phone is the mayor. are you doing this as a direct response to the nra? >> the morning. happy new year to everyone. no. our decision to provide our police officers in our nine public schools has nothing to do with the nra's recommendation. our conclusion was reached to put up these officers in the schools before the nra came out with their announcement. stuart: i am suggesting that maybe you agree with the nra.

the only way you will stop a guy, a bad guy with a gun is a good guy with a gun. this is exactly what you are doing. you really are falling into line with what the nra wanted. >> i disagree with the nra on a lot of its points. in fact, i am not a huge fan of the nra. i believe we need gun changes in this country. with that being said, i am not a national figure. i am not a state figure. i am trying to provide security for my 8000 students. until such time we get a report out of newtown, connecticut. the world changed several fridays ago for that tragedy happened. stuart: what kind of response have you gone so far from the people of lower marlboro?

>> i do not think any local official can sit there and do nothing. this is a decision we made until we can understand better how security was breached and connecticut and how we can improve our internal security measures. we are pretty good in our jurisdiction. stuart: i am just going to jump in. would you consider armed teachers in the classroom? >> i do not think that is appropriate. stuart: thank you, mayor. thank you very much for joining us. >> rank you. stuart: one spanish newspaper reports that venezuela's president is on life support. the plug could be pulled at any minute. what happens when he goes? ambassador john bolton is next.

♪ stuart: we have yet to hear anybody who really let this fiscal cliff deal. the markets, they love it. it seems like it is a relief rally. the dow jones industrials now up. synergy pharmaceutical shares are up big today. it meets key goals in a phase two trial. synergy pharmaceuticals are up 12%. another iphone could be in the works from apple. shares are up today after it started testing the new iphone and its software. the stock prices up 30%. former u.s. ambassador to the united nations, john bolton, he will join us to talk about venezuela's president.

♪

stuart: a couple years ago i went to the casinos and was astonished by the amount of business they were doing. tell me, it is straight up. nicole: straight up. breaking in 38 billionth of dollars. december hits a record. stuart: thank you. chavez may be nearing the end, if i can put it like that. the vice president says chavez this condition remains delicate. he has not been seen or heard of

since his surgery. joining us now is john bolton. if he should pass away, what does that mean for america. >> it depends really on what happens next in venezuela. their constitution provides for very quick election within 30 days. it would likely be the vice president who would be the successor candidate probably against the opposition candidate who was recently defeated by chavez. i am afraid that, again, in the short term he would carry on chavez is mission. i do not see much change. that does not tell you what the underlying reality in venezuela is, but we will just have to see

on when chavez finally meets his maker. stuart: i am thinking of a broader argument here. he led the anti-campaign are african america. argentina has repudiated its debt. if he passes, could that not wink -- we. >> i do not think that vice president is anything like mr. chavez. i do think it depends a lot on what happens in venezuela. the opposition has been weak. i like nothing better then to predict that the opposition could prevail. i think that would have the impact of weakening a lot of these left-wing tendencies. for venezuela itself, the best

thing that could happen is take some of the proceeds of their oil revenues which chavez has used for bread and services and reinvest them. it has sadly uncapitalized after ten years of being unexploited by chavez. stuart: great hardship for the venezuelan people as they are not getting these subsidies. >> it would mean great hardship for some of them. for the army in particular. he spent so much money building up the army and militias. allowing venezuelan society to get back on track, it could be very important. those subsidies to other left-wing regimes and parties wwuld disappear. stuart: john bolton, always a pleasure. you have the expertise and we need it. >> happy new year. stuart: the liberal hollywood

elite came out in full force for president obama in november. the payoff, millions of dollars of tax breaks for making movies. that was in the fiscal cliff deal. next

stuart: a big rally for the

market. we are playing great music. america looks more and more like greek. just like europe. charles, you think this fiscal cliff deal is a huge drag on the economy. >> jpmorgan just came out with numbers. they say it is a 1% drop. that is 125 billion. that shocks me. that is a tax on anyone that goes to work. life and death to so many americans. i am completely shocked that the president gave obama. when you have to spend, spend, spend, spend, it has to come from somewhere. >> it is one percentage point slower growth. stuart: i have a lightning round. the new york post reported this morning that lisa jackson

resigned because she thinks president obama will approve a keystone pipeline. how about that. >> that is true. that is why she resigned. the keystone is a major job creator. the gulf of mexico is a big deal. stuart: i am interested and we made it this pipeline according to the new york post. >> the president is between a rock and a hard place. we need that keystone pipeline. stuart: hollywood backs president obama and now he is helping much of them. part of the fiscal cliff deal includes an extension for certain film and tv productions.

>> those big-time checks came in late from hollywood. the checks that were missing were made up by hollywood. the silicon valley also get a big break. that benefits overwhelmingly the silicon valley. they got paid off. the average american watching the show, your next check coming in will be a lot lighter. stuart: $430 million. they are both in california. >> do not forget, that is where the big-time money came from. >> they want everyone else to pay their fair share. congress failed to act on a recovery bill that would send millions to the east coast after sandy ravaged the area. congress did not vote on the $60 billion appropriation to restore for the damage.

>> it has been weeks and weeks since sandy had. after hurricane katrina hit, they got their aid in two weeks time. these politicians have no problems finding new yorkers win any money for their campaigns. it is a cruel knife. stuart: but, that $60 billion bill that went to the senate, they passed it, it was loaded with extras. why are we giving millions of dollars to fisheries in alaska because of sandy? >> it is the way we do business. it is slowing down the aid. you know, i think when you put that past performance for other hurricanes, they got their money within weeks.

new yorkers and people in new jersey -- stuart: why couldn't we have a bill that says the money is going here and here. pass it. >> the republicans came out looking bad on this one also. stuart: is that your last word? >> they should have put a bill in themselves. this is a national tragedy. stuart: i do not think we will be playing anymore greek music, but we will be playing the highlight reel which is next. ♪ your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect

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